Tag: India

Innv8 is among the first coworking brand launched in India. Last month, the company was bought by one of the biggest Indian hotel platform, OYO, for a total of 31 millions US$. Meanwhile, OYO announced the takeover of two other coworking brands (PowerStation, for corporations, and Workflow, more focused on startups), demonstrating a strong will to develop its position in the coworking field. Interesting to note, OYO is supported by Softbank, one of WeWork’s main investors. Innov8 is the fourth coworking acquisition by OYO. We interviewed Ritesh Malik, Innov8‘s founder, who used to be a speaker at the Coworking India conference organized by SocialWorkplaces.com, about the vision behind the deal.

Hi Ritesh. Can you tell us the story behind Innov8?

We launched our first centre at the Heart of New Delhi- Connaught in December 2015. We wanted to revolutionise how Indian work. Innov8 is not just a place for people to work, it’s a place for people to connect. We at Innov8 want to transform real estate into a beautiful and premium workspace designed to encourage community engagement for the creators and innovators. In June 2016, US-based fund Y-Combinator backed Innov8 for its investment in the coworking industry.

We were hoping to create a collaborative community where business opportunities and activities can take place freely. We were committed to delivering excellence through design, experience, and services. Our Vision was to revolutionize real estate into beautifully designed, experience centers to empower the process and journey of creating meaningful work. Our Mission: to be World’s Most Loved Workspace brand through excellence in design, experience and delivering value.

Innov8 is now taken over by OYO. Why are the two companies complementary?

Ritesh Malik, Innov8

Innov8 and OYO are both in the business of real estate and hospitality. It’s a perfectly complementary business. OYO already has a strong play in the real estate market worldwide both as a tenant and as a supplier, with existing offerings like OYO Home, OYO LIFE, Weddigz.in and MICE offerings. Also, OYO already has thousands of corporate customers that help generate over 30% of OYO’s business. Additionally, in India, OYO works with over 8.000 asset owners, and many of them have ready space available for commercial business. The decision to, therefore, open managed workspaces is a natural transition and step forward. With vast experience of acquiring properties, creating processes and great user experiences, it will be great backing on Innov8 scalability.

With vast experience of acquiring properties, creating processes and great user experiences, it will be great backing on Innov8 scalability.

OYO is known in India as a hotel booking platform. Coworking seems quite far away from their focus, no? 

Firstly, OYO is not a hotel booking platform. OYO is a full-scale tech-driven hospitality company that operates over 18.000 franchised and leased hotels across 10 countries and 500+ cities globally. Interestingly, the company has globally leased or franchised over 200 million square feet of real estate, and have emerged as a preferred tenant of choice. Thousands of real estate owners around the world work with OYO and respect the company’s ability to upgrade all forms of real estate and deliver good quality experiences. OYO is also amongst the most preferred lesses and franchisors of real estate yields worldwide.

Over the last six years, OYO has invested heavily in building key competencies, where our operational expertise in supply acquisition and management, renovation, operations, revenue management, and distribution, through both offline and online channels, that has helped the company gain significant momentum, and emerge as the most preferred brand in the budget to mid-segment hospitality space in several markets like India and China.

We are certain that OYO’s existing competencies and international reach, will help us seamlessly deliver great quality experiences to our real estate customers as well. We are all therefore excited about our plans to create and deliver chic workspaces that will be designed to provide a hassle-free, comfortable and productive experience to coworkers, and cost-effective workspace solutions to corporates.

According to you, what does the transaction say about the office and workplace industry moving to a hospitality and services model?

The managed office space industry is inherently a unique combination of hospitality led real estate experience. With this transaction, it is a huge validation for Innov8 and the whole industry. The industry is extremely positive with the potential of office spaces market.

How would you define hospitality in the workplace world?

More than desks, chairs, coffee and office infrastructure, workspaces should provide the environment and support to make every company and coworkers grow and do their best work. Our community and value-added services make Innov8 a second home; creating an ethos of happiness at the workplace.

Would you say the Indian market is specific for this kind of approach?

Indian market is ripe for managed office spaces. India is one of the most penetrated markets by managed offices.

Startups are driving the coworking demand in India. Do you see or expect coworking to become a solution for SME and bigger corporations? Is it already happening? What’s Innov8 experience on those regards?

It is already happening. SME and bigger corporates now accepting the trend and it is beneficial for both the industry. Managed offices are the way to go for any workspace needs. At Innov8, we have already been focussing on and catering to ME and corporation. Majority of our clients are SME or corporates.

What are the specific challenges Indian coworking players have to face, nowadays, to keep up with the pace of growth?

Identify prime properties, capital, and speed of scale.

Lately, we are reading that big international players such as Airbnb are also looking towards the coworking business. Do you think this can work? Why?

The coworking or managed office market is huge with rooms for different price points and variation of the product/ service.

Do OYO and Innov8 have plans to grow beyond India?

We plan to expand and cater to the huge Indian market first.

In general, Indian coworking brands are not very active outside India, yet. Do you expect it to change? 

Yes, most definitely. There is a lot of potential. Having said that, we are currently focused on strengthening our business in India. Once we have nailed it, then the sky’s the limit.

Gargi Shah is the co-founder of one of Mumbai‘s first coworking spaces. When she opened The Playce in November 2012, the coworking concept was practically unheard of in India. Gargi spent many days dreaming up ways to explain what she did to her grandmother, who still believes that her granddaughter rents out offices for a living. The Playce has completed five eventful years – a proud home to creative, entrepreneurial and even outlandish co-workers.

We spent some time talking with her to get her impressions about running a coworking space in one of the biggest, densest and fastest developing city in the world.

We use to claim coworking is all about community. Some players say tenants just appreciate the flexibility and a convenient environment. How do you see it?

Gargi Shah

Coworking is NOT just about the community. Customers come with different goals. Some are looking for a productive office space, some are looking to find like-minded people, others for an affordable setup still, others choose coworking for the unprecedented flexibility it provides. 

Coworking is NOT just about the community. Customers come with different goals.

Having a strong community in a coworking space makes the space attractive, but it is one of the many things that space offers. It can be one of the best ways to retain customers, especially teams.

Is Coworking just a smart Real Estate game?

Coworking is generally much more than simply a Real Estate calculation. There are community, flexibility, affordability and a host of other useful services offered to the customer.

That said, there are many cases where coworking is a way to leverage non-premium properties. In these cases, it starts with a smart Real Estate Game. The premise in question is typically not a premium property for a variety of reasons – location, floor plan, market conditions etc. This makes it tricky to rent out the entire premise to a single lessee.

The owners of such Real Estate premise have come to realise that coworking can give them a quick-fix to their rental requirements. Running a coworking space is a clever idea because the premise generates at least some revenue (even if it is less than market rent) instead of lying vacant. Coworking customers are looking for affordable workspaces even if it means that they have to compromise on certain other parameters. It’s a win-win for both the parties.

Mumbai is one of the biggest and crowdiest metropoles in the world. Coworking is booming. Is community less important in big cities?

The community is just as important in the big cities, perhaps even more so because the coworkers (entrepreneurs, startups, freelancers, etc) are working in a highly competitive market. They need all the support and encouragement they can get. It certainly helps them to know that there are others like them who are sticking their neck out for their idea. The support of the community and kindred souls is invaluable when an entrepreneur is starting out. 

The community is just as important in the big cities, perhaps even more so because the coworkers are working in a highly competitive market.

On the flip side, a coworker has many more options in a big city – cafes and restaurants (long the ‘offices’ of lone warriors), extra unused desks in traditional offices, apartments etc. This makes it harder for coworking spaces to retain customers.

How do we fill in coworking spaces in India?

India is rather diverse and most coworking spaces have their own niche offering. Some offer unbeatable prices, some offer creative interiors, some have simply located themselves in a high-demand location and some have an organic community built over a period of years. In Mumbai, there are diverse demographics who need a coworking space to suit different needs. It is mainly an overwhelming demand for flexible office spaces that drives the coworking market of Mumbai.

Most coworking spaces have their own niche offering. Some offer unbeatable prices, some offer creative interiors, some have simply located themselves in a high-demand location and some have an organic community built over a period of years

Fun, conviviality, learning, networking… Is it only for startups or Gen Y and Z?

Oh no, not at all. In all our workshops and events we have seen incredibly large participation from established freelancers and folks in their forties, fifties and even a few in their sixties. One would expect that startups and Gen Y/Z folks would be a big part of the fun and networking, but more often than not they don’t have the time and inclination to get out of their personal space and explore. They are buried in their startup challenges and personal journeys. It is the 30s and over a crowd that tends to have a more long-term perspective and are an integral part of the fun, learning and networking side of things.

One would expect that startups and Gen Y/Z folks would be a big part of the fun and networking, but more often than not they don’t have the time and inclination to get out of their personal space and explore

Last year, the coworking movement hit an all-time high. With conferences in Europe, Africa, the USA and Canada, it has become evident that coworking is not only growing in established communities but all over the world.

Dr. Ritesh Malik, founder of Innov8 coworking in Delhi, believes that coworking will be essential to business growth in India. We spoke with Ritesh about the current coworking scene in Delhi and what the emerging movement has accomplished so far.

Hi, Ritesh, can you please introduce yourself and tell us a bit about Innov8 Coworking?

I am a doctor by education, but a passionate entrepreneur and startup lover at heart. I started my first venture back in 2012 and eventually sold it to Times of India group (Alive App). Over the last 2 years, I have been deep into startup funding, and I am actively working with the government of India in order to help build college entrepreneurship ecosystem in the country.

I have also spent some time in Boston, Santa Clara, LA, London etc. and have understood how these types of silicon valleys have been built over time. I realized that Silicon Valley is not a real estate but a mindset, and that is what we’re trying to build today in Delhi.

You say on your website, “we believe Entrepreneurs & Startup Enthusiasts of Delhi deserve better”, can you explain what was lacking, and has coworking improved the lives of professionals in Delhi?

24% of all the startups in India are from Delhi, but until now Delhiites weren’t exposed to startup community building. I personally feel that the most integral part of startups is the community building. It’s all about people. At Innov8, we are not focusing on the office spaces, which we provide, rather office spaces are just 10% of our business, and 90% of our focus is on community building.

We organize events (almost 1 per day) based on skill development, which helps entrepreneurs to scale up, build, break and innovate. The idea is to provide an innovative space right in the centre of Delhi where we can converge the biggest talents and create the most vibrant community in Delhi.

Dr. Ritesh Malik

I feel that the most vital aspect of a startup is the community building, startups are all about tinkering. They’re about meeting new people, interacting with them and synergizing win-win situations to create growth hacking and disruption within conventional business models.

How would you describe the coworking movement in Delhi? Is it popular, and if not, what are coworking leaders doing in order to help spread the movement?

Delhi is very immature when it comes to coworking awareness. We only got our first coworking centre back in 2012. There is a very thin line between coworking, accelerators and incubation centers in Delhi. Most of the coworking centers in Delhi are not focused on coworking, but rather focused on incubation. At Innov8 we’re very clear about our mission, we’re a pure play-coworking centre and we just aim to build the most vibrant & helpful startup community in the city.

At Innov8, we are also reaching out to the universities and educating the students about coworking. In Delhi people still have a notion that coworking is all about shared office space, but we want to change that.

What types of members do you typically house at Innov8? Are they mostly freelancers or are there members from companies?

We have a strict application process to join our coworking centre. This is for the first time in the world when coworking centers screen the applications before allowing applicants to be a part of the ecosystem. The reason for this process is because we want to keep track of the people who are part of our community. We want to attract the most intellectual and innovative minds.

Today, we focus on getting more entrepreneurs, investors, and product-based startups to be a part of the ecosystem. We are also working on a program to help freelancers build their own products by bringing 2 to 3 freelancers together.

In your experience, is coworking helping to transform work in Delhi. For example, are more corporate entities open to changing their work environment, like using a coworking space?

Not yet, but I feel that over time coworking centers are going to transform the way businesses are done in India. Perceptions of coworking are already changing. For instance, we got a request from the Kotak Mahindra Bank, as they want their CIO & his team to move into Innov8 so they have the chance to think outside the box and have a wider vision of the startup ecosystem.

What types of services do you offer and are there any particular needs that your members have? Such as events, support, education?

Mortar office space is just 10% of what we offer. We believe that more than the office space, what startups need most is the community, mentorship and access to networks. We help them build these networks by creating a fertile ground for ideas via thought leadership. We focus on skill development and also offer a virtual acceleration program where we provide our startups with a startup handbook, which includes the the do’s and don’ts.

How would you describe the design of your space? Were you inspired by any particular model, such as open workrooms, private offices, café, breakout rooms, etc.

We have one of the most beautifully designed campuses in India, we were featured in OfficeLovin, one of the best office design magazines in the world. Our space is a combination of modern design and contemporary artwork.

What seems to be the most effective types of spaces that nurture productivity in your community?

We have an ideation cube, a white boarding room, an amphitheater, common innovation zone as well as an open terrace. These are the areas, which are full of innovation and entrepreneurial drive.

Your site often mentions Silicon Valley. Do you aspire to be the next Silicon Valley or are you creating your own ecosystem specifically for your community? Do you think coworking spaces are important to creating hubs for innovation, and if so, why?

I believe that coworking centers are the mecca of innovation worldwide. We are on a mission to make Delhi as the next Silicon Valley after SFO, Tel Aviv, Bengaluru etc. Silicon Valley is not a real estate, but a mindset; we’re changing the mindset.

As a global movement, Coworking has taken roots in India the last years.

A couple of hundreds of coworking spaces are now in operation in India.

Mentioning coworking space means we don’t take into account, here, basic shared spaces environments without services and (semi-)open access. Well workspaces associated with an identity and a community, mainly dedicated to digital workers of any kinds.

About one third took part in the Coworking India Survey 2016 produced by SocialWorkplaces.com prior to the Coworking India conference, on September 9-10th, 2016. Here are some key data disclosed during the event which gathered close to 120 coworking operators and pundits from the whole country.

Bigger on average in size, though still limited in number

So far, there is less coworking spaces in India than coworking spaces operating in the London area alone.

That said, though, on average, coworking spaces operating in India seemed wider in space than the average noticed in Europe, for instance. More than one third of the interviewed coworking spaces manage a facility more than 1.000 m2 wide.

Likewise, the average size of coworking tenants each coworking deals with seems to be wider than the average observed in Europe, although the number of operating coworking spaces is much higher over there.  According to the data, one third of the surveyed coworking spaces caters between 100 and 200 members at least.

Acceleration and startup programs often provided

India wants to put itself as a startup nation.

No surprise that a big deal of the coworking spaces who replied to the survey are targeting startups and digital entrepreneurs. So, it is not amazing that more than 50% of the interviewed spaces described not only themselves as coworking spaces but also as Incubation/Acceleration program providers or sometimes TechHubs.

Contentwise, the community building activity is definitily as critical for the Indian coworking scene as it is elsewhere, show the data collected for the Survey. More than 2/3 of the Indian coworking spaces organize in house events at least once a week.

The Coworking industry in India seems for sure ready to take off confirmed attendees at the first Coworking India conference.

Download more facts & data from the Coworking India 2016 Survey providing your information here below.

Download Coworking India 2016 Survey

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